Auctions and Negotiations are Comparable , Aren ’ t They ?
نویسندگان
چکیده
Comparative studies of auction and negotiation exchange mechanisms are inconclusive. These studies have typically compared outcomes obtained from the two mechanisms. The question which this paper aims to address is the viability of outcome-based comparisons. Such comparisons assume that both mechanisms produce the same types of outcomes but their values differ. An argument can be made that this is not necessarily the case. Based on several experiments of multi-attribute auctions and two formats of multi-bilateral negotiations the paper argues that both mechanisms produce some outcomes which are the same but other outcomes which are qualitatively different.
منابع مشابه
Concession-making in Multi-bilateral Negotiations and Multi-attribute Auctions
Reverse auctions and negotiations are two common procurement mechanisms. The drawback of many auctions is their sole focus on price. The drawback of negotiations is that they are sequential, slow and costly. Internet enables multi-attribute auctions and multi-bilateral multi-attribute negotiations efficiently. In both processes concession-making plays a key role. The paper presents typology of ...
متن کاملVerifiable Offers and the Relationship between Auctions and Multilateral Negotiations*
We use the experimental method to compare second-price auctions with verifiable multilateral negotiations in which the sole buyer can credibly reveal to sellers the best price offer he currently holds. Despite the two institutions seeming equivalence, we find that prices are lower in verifiable multilateral negotiations than in second-price auctions. The difference occurs because low-cost selle...
متن کاملA Behavioral Study of Concession-making: Multi-attribute Auctions vs. Multi-bilateral Negotiations
Concession-making behavior is an essential process in negotiations and auctions and has a critical impact on the outcomes of an exchange. In auctions, concessions relate to deciding on the next bid by bid-makers, while in negotiations they involve proposing next offers by both parties. The purpose of this paper is to empirically investigate concession-making by parties in multi-attribute auctio...
متن کاملNegotiation and Auction Mechanisms in E-procurement: Systems and Experiments
Auctions and negotiations are mechanisms used in market exchanges. Behavioral economics experiments focused on the mechanism efficiency which required highly simplified problems and contexts. This paper discusses an on-going project involving an experimental comparison of auction and negotiation mechanisms embedded in software which we have developed. The experiments are situated in an e-busine...
متن کاملThe Effect of Offer Verifiability on the Relationship Between Auctions and Multilateral Negotiations
We use the experimental method to compare second-price auctions to “verifiable” multilateral negotiations in which the sole buyer can credibly reveal to sellers the best price offer it currently holds. We find that transaction prices are lower in verifiable multilateral negotiations than in second-price auctions, despite the two institutions’ seeming equivalence. The difference occurs because l...
متن کامل